NEW YORK: In a significant strategic shift, social media entity X, formerly known as Twitter, has announced the discontinuation of its promoted accounts ad business, which allowed advertisers to showcase their accounts within users’ timelines to attract new followers. The decision, reported by Axios on Tuesday, marks a departure from a revenue stream that annually generated over $100 million in global earnings for the platform.
The move away from promoted accounts, also known as “Follower Objective” ads, signals a change in X’s advertising landscape and highlights the evolving priorities of the company. This decision comes as X aims to reposition its brand image under the leadership of CEO Linda Yaccarino, a former advertising executive at NBCUniversal, who assumed her role on June 5.
Significance of Promoted Accounts
Promoted accounts have traditionally been a cornerstone of advertisers’ strategies to foster engagement and expand their reach on the platform. These ads enable advertisers to connect with specific target audiences and drive business growth through increased followership.
While X did not immediately respond to a Reuters request for comment, the decision to abandon promoted accounts underscores the company’s ongoing efforts to reshape its direction and regain the confidence of advertisers. The platform has experienced shifts and changes, particularly following adjustments made by entrepreneur Elon Musk, which prompted some advertisers to exit the platform.
Since assuming her position, CEO Linda Yaccarino has been proactive in redefining X’s identity and attracting back advertisers who may have departed amid prior changes. This shift away from promoted accounts signifies her commitment to recalibrating the platform’s advertising strategies and presenting a new face to both users and advertisers.
